One in three small firms not prepared for imminent PAYE changes

Study finds 36% of small businesses unaware of upcoming Real Time Information changes

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Many small firms are unprepared for imminent changes to the PAYE system, with only 64% aware of the changes that the introduction of the Real Time Information (RTI) system will bring, according to new research published today. The study of 1,100 small businesses across the UK, conducted by business software firm Sage UK, also reported uneasiness about the changes from many small firms, with nearly half feeling that the changes will increase rather than lessen their administrative burden and only one in ten recognising any potential positive impact RTI might have. RTI, due to be introduced in April 2013, will require employers to start providing information about employee PAYE, National Insurance and student loan information to HMRC at the point of payment each month rather than at the end of the year. The changes represent one of the most fundamental shifts in small business reporting and payroll requirements since 1944. Neilson Watts, Associate Product Manager at Sage, commented: “Although we have seen increased awareness for RTI over the last year, it is still concerning that so many businesses are unaware of the changes and the implementation this will have to their firm.  RTI will impact all businesses, regardless of their size, and with its introduction firms will benefit by streamlining processes, relieving the much dreaded nightmare of Payroll Year End and relieving the increased administrative burden for payroll at this time of year.  We urge that firms act now to not only understand exactly how it will impact their businesses but to adequately prepare for the changes coming into play.” For more information on RTI visit

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